North Carolina Down Payment Assistance Systems

Online Merchant account - These programs would be the Mortgage Credit Certificate as well as the deposit Assistance System.

You also purchase a house between December 1, 2009 and January 1, 2009 and if you meet the requirements for one of those programs, you can ALSO qualify for the $8,000 tax credit merely enacted into law in the Federal Economic Stimulus Plan.

First, who is a first-time Home Buyer? There is a first-time Home Buyer someone who has not owned a house in the prior three years. That is precisely the same qualifying definition for the $8,000 tax credit.

A Mortgage Credit Certificate (MCC) is a national tax credit to help home buyers with moderate and low incomes. All home owners can claim an itemized deduction for mortgage interest. The MCC takes this a step farther. An MCC “reduces your tax liability based on a portion of the mortgage interest that you pay.

You can claim 20% of the interest you pay on your own mortgage as a credit on your federal income taxes, in case you qualify for the MCC. You are able to save around $2,000 on your taxes.

You will have the ability to join this with the $8,000 tax credit should you qualify for 2009, for the MCC. This might reduce a purchaser's tax liability .

Who Qualifies for an MCC?

Household income is defined as the “gross income of the mortgagor and every other person anticipated to live in the home who's 18 years of age or older.”

The income and house price limits Durham and Chatham Counties are listed below.

MCC Income Limitations 1 Person $61,500 2 Men $61,500 3 Men $70,500 4 Individuals $70,500

MCC Sales Cost Limitations New House $220,000 Existing Home $210,000

Who Qualifies for Down Payment Assistance?

The customer only has to pay and the load would pay as much as .

This plan has more rigorous income limits than the MCC program outlined above. Like the MCC application, it can be utilized in conjunction with all the new $8,000 tax credit on house purchases between January 1, 2009 and December 1, 2009. The deposit assistance, however, can't be utilized along with all the MCC. It is an either or situation.

House price limits that apply in Durham, Orange and Chatham Counties and the income are given below.

Down Payment Assistance Income Limits

1 Man $39,950 2 Individuals $45,650 3 Individuals $51,350 4 Men $57,050

Down Payment Support Sales Price Limits New House $210,000 Existing Dwelling $210,000